Trump Says "Booming"--Justin Wolfers Fact-Checks The Economy - CNN

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What happens when leaders talk up the economy, but the data (and your lived experience) don’t back it up?

Justin Wolfers offers a grounded assessment: the U.S. economy is a B-. The good news: it’s not a meltdown. The bad news: the direction isn’t reassuring. Unemployment has been edging higher, inflation remains above the Fed’s preferred pace, and consumer confidence is hovering near a historic low.

Wolfers then takes on specific claims—investment “booming,” inflation “defeated,” prices “falling”—and matches them to the actual numbers. The gap between rhetoric and reality matters because it shapes policy decisions, business expectations, and how households plan.

Finally, Wolfers explains the international side: unpredictable tariff threats and chest-thumping foreign policy can reduce respect for the U.S. and push other countries to sign deals elsewhere—leaving American workers and firms on the outside looking in.

Stakes: When the U.S. loses trust abroad and misreads conditions at home, it can mean slower growth, fewer good jobs, and a higher cost of living for your family. - 01/28/2026.


Topics covered:
Why Wolfers calls the economy “B-”
How unemployment drifting up changes the risk picture
What “inflation defeated” would actually look like
Why consumer confidence matters for spending and growth
The budget deficit and why this moment is unusual
The reality of business investment trends
How tariff uncertainty affects trade relationships
Why global reputation has real economic consequences

Contents:
00:00 The economy gets a grade
00:48 Jobs, inflation, deficits, confidence
02:00 Fact-checking headline claims
03:18 America’s standing in the world
03:55 The “bully” metaphor—and the cost of being frozen out

👉 Key takeaway: The U.S. economy is decent, but the bragging doesn’t match the data—and the world is adapting.